Genius Grandson Of The Loan Shark King

The pressure on Michael Burry only intensified.

Eventually, he was summoned by the Securities and Exchange Commission.

Michael Burry arrived at the SEC’s New York office.

Beside him was the elite legal team Kim Muhyuk had sent.

“Mr. Burry, don’t worry. We’ll be right beside you.”

Former IRS Commissioner John Winchester reassured him.

Burry let out a deep sigh.

The IRS had been stressful enough, but the SEC presented an entirely different kind of burden.

The SEC possessed the authority to establish rules and regulations governing securities transactions.

But their true power lay in their investigative authority.

They could investigate suspected securities violations.

Through subpoenas, witness testimony, and document demands, they could gather evidence.

On top of that, they could impose administrative sanctions.

They could fine individuals and corporations, suspend trading, and even revoke registrations.

“Mr. Michael Burry. I’m SEC investigator Robert Johnson, and this is my colleague, Jessica Wright.”

As Burry entered the interrogation room, two investigators greeted him.

Burry nodded and sat down.

Johnson continued.

“Mr. Burry, we have a few questions regarding the profits your hedge fund recently generated.”

“Go ahead.”

“We understand that beginning in 2006, you predicted the collapse of the subprime mortgage market and began entering CDS contracts. How were you able to make such a prediction?”

Despite the turmoil in his mind, Burry answered calmly.

“I simply analyzed publicly available information. I identified the housing bubble, the loosening of lending standards, and the risks posed by securitized mortgage products. It wasn’t just me. Many people issued warnings. But they lacked conviction. I had conviction, so I invested aggressively.”

Jessica Wright cut in.

“But predictions that accurate are extraordinarily difficult. Even if someone predicted it, those investments could have resulted in enormous losses had they been wrong. Did you perhaps receive insider information?”

Burry’s lawyer immediately objected.

“That’s an inappropriate question. Are you questioning our client’s analytical abilities?”

Johnson raised a hand to calm things down.

“Understood. Let’s move on. Could you tell us about your relationship with Dreamhigh Investment?”

After thinking for a moment, Burry answered.

“James, the CEO of Dreamhigh, is one of the major investors in our fund. There’s no relationship beyond that.”

“Hmmm... Doesn’t that seem strange even to you? Dreamhigh chose not to invest directly. Instead, they invested through your fund. Dreamhigh suffered major losses through CDO contracts. Could it be that they used Dreamhigh’s reputation to inflate the bubble further and conspired with you to earn even larger profits?”

“...I know they entered CDO positions. But as far as I know, they exited them before the crisis arrived. After that, they took the same position I did. That’s excessive speculation.”

Johnson nodded while taking notes.

“I see. Then what are your thoughts regarding the recent Lehman Brothers crisis?”

Unable to discern the intent behind the question, Burry hesitated before answering.

“It was inevitable. Among Wall Street firms, Lehman Brothers stood out in its exposure to MBS, CDOs, and CDS contracts.”

“So you already knew the fundamental problems?”

Johnson’s eyes gleamed.

Like a hyena spotting prey.

Swallowing nervously, Burry answered,

“As I said before, all the warning signs were already in the market. Most people simply chose to ignore them.”

The questioning continued for hours.

Burry answered as best he could, but the investigators remained relentless.

At the end, Johnson said,

“Mr. Burry, everything you said today has been recorded. If any part of your testimony proves false, it could work against you later. Do you understand?”

“Yes.”

“We will continue investigating the connections between you, Dreamhigh, and this financial crisis. Thank you for your cooperation.”

As he left the interrogation room, Burry stretched and released a long sigh.

John Winchester patted his shoulder.

“You did well, Mr. Burry. Don’t worry. They have no evidence. If they did, they wouldn’t have finished questioning you so quickly.”

Burry felt relieved by John’s words.

Just then, his phone rang.

After checking the caller ID, he answered immediately.

“Hello?”

— Burry, did the investigation go well?

“Yes. It just ended. But I don’t think they’ll back down easily.”

Kim Muhyuk’s calm voice came through the receiver.

— We’ll protect you. This isn’t a simple investigation. They’re trying to turn you into a sacrifice no matter what.

Burry was silent for a moment.

Then he asked,

“...Charlie, what exactly is happening?”

— Everything will become clear soon. For now, just endure quietly.

After hanging up, Burry looked up at the sky with a complicated expression.

He could instinctively tell he was standing in the center of a massive vortex.

But he still didn’t know what that vortex truly was, or where it would sweep him.

“Let’s go, Mr. Burry. You’ve suffered enough for today.”

At John’s words, Burry nodded and climbed into the car.

* * *

As Wall Street giant Lehman Brothers pursued a sale, the entire financial world focused its attention on the firm.

The 150-year-old investment bank was facing collapse.

Lehman CEO Dick Fuld desperately searched for a buyer to save the company.

The first party they approached was Barclays.

Barclays was highly interested in acquiring Lehman.

Negotiations were proceeding better than expected.

“Barclays won’t be able to acquire them.”

When Han Kyungyeong hurried over with the news, I smiled.

“Even though rumors say the deal’s already been finalized?”

“The FSA won’t approve it. No, they’ll offer conditional approval. They’ll say they’ll approve it only if the U.S. government provides support.”

“And if the American and British governments somehow reach an agreement?”

“If that were possible, they wouldn’t be pushing Lehman toward bankruptcy. Lehman is a warning to Wall Street. They’re saying that if things continue like this, there’ll be no more ‘too big to fail.’”

However, things were developing differently from what I had expected.

Rumors reached me that Britain’s Financial Services Authority was considering approval favorably.

“Boss. Baltice is making moves. Nace himself, head of the Rothschild family, has personally stepped in.”

“So this was their plan. I wondered why they weren’t trying harder to save Lehman...”

It seemed they intended to clean out Lehman’s toxic assets and swallow the entire company.

“They really are something. Turning a crisis into an opportunity.”

The experience accumulated over centuries of controlling European and American financial markets from behind the scenes wasn’t for nothing.

“We can’t hand Lehman over to them. Let’s go to England.”

“What are you planning?”

“We have to persuade the FSA first.”

“Will they even meet with us?”

“Don’t we have Murdoch? Prepare everything immediately.”

After Manager Ma left, I picked up my phone and called Murdoch.

— Charlie, what is it?

“Murdoch, I need your help. I need a meeting with the head of the FSA.”

— The FSA? Let me see. Wasn’t McCarthy still in charge?

“No. He was recently replaced by Adair Turner.”

— Ah, Lord Turner! That stubborn old man?

I suspected the Rothschilds had influenced that leadership change as well.

Callum McCarthy, a hawk who favored tighter regulations, had been replaced by the more dovish Adair Turner.

The timing was too perfect to be coincidence.

“Will it be difficult?”

— Hahaha! I’m Murdoch. If someone refuses my introduction, life can become very unpleasant for them. Don’t worry. I’ll arrange it immediately.

“Thank you. Let’s have dinner sometime.”

— No need for thanks between us. But may I ask what this is about?

“Well...”

I gave him a rough summary.

— Hmm... It won’t be easy. If you need my help, call me anytime. I’ll fly to Britain immediately.

“Thank you.”

A few days later.

I arrived at Heathrow Airport in London.

The moment I stepped off the plane, I headed straight for the FSA.

My expression was stiff.

Negotiations had accelerated dramatically over the past few days.

American and British media were publishing surprisingly detailed articles about the deal.

Someone had clearly leaked the information deliberately.

After arriving at the FSA building and taking a moment to steady myself, I went inside.

Since my visit had already been arranged, I was quickly seated across from Lord Adair Turner.

“Charlie, I was surprised by your request for such an urgent meeting. What brings you here?”

After bowing politely, I went straight to the point.

“Lord Turner. I’d like to discuss the acquisition of Lehman Brothers.”

Turner’s expression hardened.

“Why bring that to me?”

“Because unless the FSA approves it, Barclays will never be able to swallow Lehman Brothers.”

Turner nodded.

“That’s true. But why should I discuss it with you?”

His tone was sharp and cold.

The hostility was unmistakable.

‘So my suspicion was right.’

What had been ninety percent suspicion became absolute certainty.

Adair Turner was speaking on behalf of Baltice.

“That’s exactly why the consequences of Lehman’s acquisition are so important.”

I removed several documents from my briefcase and handed them over.

“These are analyses of Barclays’ financial condition. If they acquire Lehman, the entire British financial system could be endangered.”

Turner skimmed the papers and frowned.

“Where did you get these...”

“That’s not important. What matters is that the information is accurate.”

I continued.

I explained in detail how Lehman’s toxic assets were larger than expected, how Barclays would struggle to absorb them, and the devastating effects such a deal could have on the financial system as a whole.

Turner listened with an increasingly serious expression.

“Charlie, I understand all your claims. But these are merely predictions about things that haven’t happened yet. Correct?”

“Yes. Predictions, but of a future that is already scheduled.”

“That’s arrogance, Charlie.”

As expected, he had no intention of changing his mind.

“I’ve given you a clear warning. If this deal goes through, I’ll release all the information I possess to the media. And that information will include the dark dealings between you and certain people.”

“Ha... Are you threatening me? How dare you!”

Turner glared at me.

“A threat? Not at all. I’m simply telling you the truth.”

“Isn’t it because you want Lehman for yourself? If Barclays acquires them, you’ll be left with nothing. Isn’t that why you’re trying to sabotage this?”

“Well, I won’t deny that. Dreamhigh and I can handle it. Barclays cannot.”

“If you’re done, then leave. I have no interest in hearing any more.”

It was an unmistakable order to leave.

Before getting up, I gave Turner one last piece of advice.

“Sometimes, admitting a wrong decision and correcting it is the wisest choice, Lord Turner.”